YouTube Buys Video Producer Next New Networks

YouTube purchases Next New Networks and fashions YouTube Next to bolster its video content partner program. The program pairs display ads with professionally produced content.

YouTube March 7 acquired video production company Next New Networks and
launched YouTube Next, a unit within the Google company geared to accelerate
video creation and monetization.
Financial terms of the deal were not revealed.

The Next New Networks buy, which had been rumored
since December, will provide YouTube with the expertise needed to help its
content partners shoot and package video content. This is a task the Next New
team has proved suited for after garnering over 2 billion views and 6 million
subscribers across their video partner networks since 2007.

YouTube's partner program, which grew to more than 15,000 members in
2010, showcases creators' content in exchange for pairing videos with display
ads next to their videos. The program marks a departure from videos fashioned by
amateurs as YouTube seeks to compete with Hulu, Netflix and other providers of
Web video.
Tom Pickett, director of Global Content Operations and YouTube Next, said
that while hundreds of the 15,000 YouTube content partners are making six
figures a year, hundreds making a living on YouTube isn't enough.
YouTube Next will help expand YouTube's partner program and, ideally, help
those video creators make more money.
"Within YouTube, Next New Networks will be a laboratory for
experimentation and innovation with the team working in a hands on way with a
wide variety of content partners and emerging talent to help them succeed on
YouTube," said Pickett in a blog post.
YouTube Next-branded programs will build off past partner
development initiatives such as the Partner Grants Program that
advanced partners' funds based on future YouTube revenue share.
The YouTube Next team will also boost partner meet-ups and community events,
partner education and training, and launch new capabilities in audience
development
Google is betting big on YouTube, which leads the search
engine's display ad offerings. YouTube helped Google's display ads to a $2.5 billion run-rate in 2010.